Companies Claim First Amendment Violations and Retaliation
DoorDash and Uber contend the laws deprive them of the right to choose whether, how, or when to discuss tipping with customers — and worse, that forced messages may appear as company-endorsed recommendations supporting 10% predelivery tipping, especially in a city where their fees have already risen due to minimum-earnings mandates.
They also accuse the city of retaliation, asserting NYC imposed these laws after the companies changed their tipping flow in response to the city’s December 2023 minimum-pay rule, shifting tipping prompts to appear only after an order was completed.
Property Rights Argument: A ‘Regulatory Taking’
The companies allege the law violates the Fifth and Fourteenth Amendments by taking control over their platforms without compensation.
“The Tipping Law improperly nullifies plaintiffs’ prior value-enhancing product decisions, forecloses future product innovations, and diminishes plaintiffs’ platforms’ economic value,” they argued.
